Keep Natural Gas for Palo AltoFor more than 2 years, Palo Alto city staff has been working under the direction of the Palo Alto city council to develop plans and documents which would move residents and businesses to switch from natural gas for heating purposes to electricity. What does this mean for you. It means purchasing a new electric stove, upgrade your natural gas water heater with what's called a heat pump water heater. The same goes for natural gas furnace and replace it with a heat pump for space heating.